Optimize Your System z ROI with z Operational Insights (zOI)

Hopefully all System z users are aware of the Monthly Licence Charge (MLC) pricing mechanisms, where a recurring charge applies each month.  This charge includes product usage rights and IBM product support.  If only it was that simple!  We then encounter the “Alphabet Soup” of acronyms, related to the various and arguably too numerous MLC pricing mechanism options.  Some might say that 13 is an unlucky number and in this case, a System z pricing specialist would need to know and understand each of the 13 pricing mechanisms in depth, safeguarding the lowest software pricing for their organization!  Perhaps we could apply the unlucky word to such a resource.  In alphabetical order, the 13 MLC pricing options are AWLC, AEWLC, CMLC, EWLC, MWLC, MzNALC, PSLC, SALC, S/390 Usage Pricing, ULC, WLC, zELC and zNALC!  These mechanisms are commercial considerations, but what about the technical perspective?

Of course, System z Mainframe CPU resource usage is measured in MSU metrics, where the usage of Sub-Capacity allows System z Mainframe users to submit SCRT reports, incorporating Monthly License Charges (MLC) and IPLA software maintenance, namely Subscription and Support (S&S).  We then must consider the Rolling 4-Hour Average (R4HA) and how best to optimize MSU accordingly.  At this juncture, we then need to consider how we measure the R4HA itself, in terms of performance tuning, so we can minimize the R4HA MSU usage, to optimize cost, without impacting Production if not overall system performance.

Finally, we then have to consider that WLC has a ~17-year longevity, having been announced in October 2000 and in that time IBM have also introduced hardware features to assist in MSU optimization.  These hardware features include zIIP, zAAP, IFL, while there are other influencing factors, such as HyperDispatch, WLM, Relative Nest Intensity (RNI), naming but a few!  The Alphabet Soup continues…

In summary, since the introduction of WLC in Q4 2000, the challenge for the System z user is significant.  They must collect the requisite instrumentation data, perform predictive modelling and fully comprehend the impact of the current 13 MLC pricing mechanisms and their interaction with the ever-evolving System z CPU chip!  In the absence of such a simple to use reporting capability from IBM, there are a plethora of 3rd party ISV solutions, which generally are overly complex and require numerous products, more often than not, from several ISV’s.  These software solutions process the instrumentation data, generating the requisite metrics that allows an informed decision making process.

Bottom Line: This is way too complex and are there any Green Shoots of an alternative option?  Are there any easy-to-use data analytics based options for reducing MSU usage and optimizing CPU resources, which can then be incorporated into any WLC/MLC pricing considerations?

In February 2016 IBM launched their z Operational Insights (zOI) offering, as a new open beta cloud-based service that analyses your System z monitoring data.  The zOI objective is to simplify the identification of System z inefficiencies, while identifying savings options with associated implementation recommendations. At this juncture, zOI still has a free edition available, but as of September 2016, it also has a full paid version with additional functionality.

Currently zOI is limited to the CICS subsystem, incorporating the following functions:

  • CICS Abend Analysis Report: Highlights the top 10 types of abend and the top 10 most abend transactions for your CICS workload from a frequency viewpoint. The resulting output classifies which CICS transactions might abend and as a consequence, waste processor time.  Of course, the System z Mainframe user will have to fix the underlying reason for the CICS abend!
  • CICS Java Offload Report: Highlights any transaction processing workload eligible for IBM z Systems Integrated Information Processor (zIIP) offload. The resulting output delivers three categories for consideration.  #1; % of existing workload that is eligible for offload, but ran on a General Purpose CP.  #2; % of workload being offloaded to zIIP.  #3; % of workload that cannot be transferred to a zIIP.
  • CICS Threadsafe Report: Highlights threadsafe eligible CICS transactions, calculating the switch count from the CICS Quasi Reentrant Task Control Block (QR TCB) per transaction and associated CPU cost. The resulting output identifies potential CPU savings by making programs threadsafe, with the associated CICS subsystem changes.
  • CICS Region CPU Constraint: Highlights CPU constrained regions. CPU constrained CICS regions have reduced performance, lower throughput and slower transaction response, impacting business performance (I.E. SLA, KPI).  From a high-level viewpoint, the resulting output classifies CICS Region performance to identify whether they’re LPAR or QR constrained, while suggesting possible remedial actions.

Clearly the potential of zOI is encouraging, being an easy-to-use solution that analyses instrumentation data, classifies the best options from a quick win basis, while providing recommendations for implementation.  Having been a recent user of this new technology myself, I would encourage each and every System z Mainframe user to try this no risk IBM z Operational Insights (zOI) software offering.

The evolution for all System z performance analysis software solutions is to build on the comprehensive analysis solutions that have evolved in the last ~20+ years, while incorporating intelligent analytics, to classify data in terms of “Biggest Impact”, identifying “Potential Savings”, evolving MIPS measurement, to BIPS (Biggest Impact Potential Savings) improvements!

IBM have also introduced a framework of IT Operations Analytics Solutions for z Systems.  This suite of interconnected products includes zOI, IBM Operations Analytics for z Systems, IBM Common Data Provider for z/OS and IBM Advanced Workload Analysis Reporter (IBM zAware).  Of course, if we lived in a perfect world, without a ~20 year MLC and WLC longevity, this might be the foundation for all of our System z CPU resource usage analysis.  Clearly this is not the case for the majority of System z Mainframe customers, but zOI does offer something different, with zero impact, both from a system impact and existing software interoperability viewpoint.

Bottom Line: Optimize Your System z ROI via zOI, Evolving From MIPS Measurement to BIPS Improvements!

System z MLC Pricing Increases: Look After The Pennies…

Recently IBM announced ~4% price increases in z/OS Monthly License Charges (MLC) for selected Operating System and Middleware software programs and associated features. Specifically, price increases will apply to the VWLC, AWLC, EWLC, AEWLC, PSLC, FWLC and TWLC pricing metrics. Notably, SDSF price increases will be ~20% with Advanced Function Printing (AFP) product price increases of ~13-24%. In a global economy where inflation rates for The USA and Western Europe are close to 0%, one must draw one’s own conclusions accordingly. Lets’ not forget that product version changes typically have an associated price increase. From a contractual viewpoint, IBM only have to provide 90 days advance notice for such price changes, in this instance, IBM provided 150+ days advanced notice.

Price increases are inevitable and as always, it’s better to be proactive as opposed to reactive to such changes. As always, the old proverbs always make good sense and in this instance, “look after the Pennies and the Pounds will look after themselves”! This periodic IBM price increase is inevitable, but is not the underlying issue for controlling System z software costs. For many years, since 1994 to be precise, when IBM introduced Parallel Sysplex License Charges (PSLC), the need for IBM Mainframe users to minimize MSU usage has been of high if not critical importance. Nothing has changed in this 20+ year period and even though IBM might have introduced Sub-Capacity and specialty engines to minimize chargeable MSU usage, has each and every System z user optimized their MSU usage? Ideally this would not be a rhetorical question, rather being a “Golden Rule”, where despite organic CPU capacity increases of ~10% per annum, a System z environment could maintain near static IBM MLC software costs.

I have written several blog entries and presented on this subject matter over the years, for example:

The simple bottom line is that System z MLC software accounts for ~20-35% of the overall System z TCO, typically being the #1 expenditure item. For that reason alone, it’s incumbent for each and every System z user to safeguard they have the technical and commercial skills in place to manage this cost item, not as an afterthought, but inbuilt into each and every System z process, from application design, through to that often neglected afterthought, application tuning.

Many System z organizations might try to differentiate between a nuance of System and Application tuning, but such a “not my problem” type attitude is not acceptable and will be imposing a significant financial burden on each and every organization.

A dispassionate and pragmatic approach is required for optimizing System z CPU usage. In this timeframe, let’s examine the ~20% SDSF price increase. IBM will quite rightly state that in conjunction with their z/OS 2.2 release, there are significant SDSF product function advancements, including zIIP offload, REXX interoperability and increased information delivery. However are such function improvements over and above the norm and not expected as a Business As Usual (BAU) product improvements, which should be included in the Service & Support (S&S) or Monthly License Charges (MLC) paid for software?

In October 2013 I wrote a blog entry; Mainframe ISV Software: Is Continuous Product Improvement Always Evident? The underlying message was that an ISV should deliver the best product they can, for each and every release, without necessarily increasing software costs. In this particular instance, the product was an SDSF equivalent, namely (E)JES, which many years ago delivered all of the function incorporated in SDSF for z/OS 2.2, but for a fraction of the cost…

As of 1 November 2015, IBM will start billing cycles for Country Multiplex Pricing (CMP), which requires the October 2015 version of SCRT, namely V23R10. A Multiplex is defined as a collection of all System z servers in one country, measured as one System z server for software sub-capacity reporting. Sub-Capacity program utilization peaks across the Multiplex will be measured, as opposed to separate peaks by System z servers. CMP also provides the flexibility to move and run workloads anywhere with the elimination of Sysplex aggregation pricing rules.

Migrating to CMP is focussed on CPU capacity growth and flexibility going forward. Therefore System z users should not expect price reductions for their existing workloads upon CMP deployment. Indeed there are CMP deployment considerations. A CMP MSU baseline (base) needs to be established, where this MSU Base and associated MLC Base Factor is established for each sub-capacity MLC product and each applicable feature code. These MSU and MLC bases represent the previous 3 Month averages reported by SCRT before commencing CMP. Quite simply, to gain the most from CMP, the System z user must safeguard that their R4HA for each and every MLC product is optimized, before setting the CMP baseline, otherwise CMP related cost savings going forward are likely to be null.

From a very high-level management viewpoint, we must observe that IBM are a commercial organization, and although IBM provide mechanisms for controlling cost going forward, only the System z user can optimize System z MLC cost for their organization. Arguably with CMP, Soft-Capping isn’t a consideration, it’s mandatory.

Put very simply, each and every System z user can safeguard that they look after the Pennies (Cents) and the Pounds (Euros, Dollars) will look after themselves by paying careful attention to System z MLC software costs. Setting a baseline of System z MLC costs is mandatory, whether for the first time, or to set a new baseline for CMP deployment. Maintaining or lowering this System z MLC cost baseline should or arguably must be the objective going forward, even when considering 10% organic CPU growth, each and every year. System z decision-makers and managers must commit to such an objective and safeguard the provision of adequately skilled personnel to optimize such a considerable TCO cost line item (I.E. MLC @ ~20-35% of System z TCO). In an ecosystem with technical resources including DBA, Systems Programmer, Capacity Planner, Application Personnel, Performance Tuning, et al, why wouldn’t there be a specialist Software Cost Manager?

Let’s consider how even an inexperienced System z user can maintain a baseline of System z MLC costs, even with organic CPU capacity growth of 10% per annum:

  • System z Server Upgrade: Higher specification CPU chips or Technology Transition Offering (TTO) pricing metrics deliver 10%+ cost per MSU benefits.
  • System z Specialty Engines: Over time, more and more application workload can be offloaded to zIIP processors, with no sub-capacity MLC software charges.
  • System z Software Version Upgrades: Major subsystems such as CICS, DB2, IMS, MQSeries and WebSphere deliver opportunity to lower cost per MSU; safeguard such function exploitation.
  • Application Tuning: Whether SQL, COBOL, Java, et al, or the overall I/O subsystem, safeguard that latest programming techniques and I/O subsystem functions are exploited.
  • New Application Deployment: As and when possible, deploy new or convert existing workloads to benefit from the optimal MLC pricing metric; previously zNALC, nowadays zCAP.
  • Technical & Commercial Skills Currency: Safeguard personnel have the latest System z software pricing knowledge, ideally from an independent 3rd party such as Watson & Walker.

In conclusion, as householders we have the opportunity to optimize our cost expenditure, choosing and switching between various major cost items such as financial, utility and vehicle products. As System z users, we don’t have that option, only IBM provide System z servers and associated base architecture, namely the most expensive MLC software products, z/OS, CICS, DB2, IMS and WebSphere/MQ. However, just as we manage our domestic budgets, reducing power usage, optimizing vehicle TCO and getting more bang from our buck for financial products various, we can and must deliver this same due diligence for our System z MLC TCO. With industry averages of ~$500-$1000 per MSU for z/OS MLC software and associated annual expenditure measured in many millions, why wouldn’t any System z user look to deliver 10%+ cost per MSU optimization, year-on-year for their organization?

Clearly the cost of doing nothing in this instance, is significant, measured in magnitudes of millions, each and every year. Hence for System z MLC TCO optimization, looking after the Pennies is more than worthwhile, while the associated benefit of the Pounds, Euros or Dollars looking after themselves is arguably priceless.